A lot of prospective college students may soon be sighing in relief: Purdue University is partnering with Vemo Education in efforts to help alleviate the stress of student loans and debt.
They’re pushing income-share agreements (ISA), which make it so that students can pay for college by selling a percentage of their future income to backers. This makes it so they won’t have to take on debt or pay immediately for school. Students in lucrative career fields will pay smaller shares while those in less lucrative careers will pay more.
Although controversial, supporters say that this will protect students from “bad luck.” A huge downside, however, is that they may end up paying more with an ISA than if they had taken out a loan.
Image via The College Investor.